IPWA PLC [RC:2432] ANNUAL REPORT AND FINANCIAL STATEMENTS ... PLC - 2013... · 31 december, 2013...

31 DECEMBER, 2013

BBC PROFESSIONALSCHARTERED ACCOUNTANTS

IPWA PLC

[RC:2432]

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED

CONTENTS PAGES

Directors and other corporate information 2

Financial highlights 3

The report of the directors 4

The report of the audit committee 9

Statement of directors responsibilities 10

Report of the independent auditors 11

Statement of financial position 12

Statement of comprehensive income 13

Statement of changes in equity 14

Statement of cash flows 15

Notes to the financial statements 16

Value added statement 39

Financial Summary 40

1

IPWA PLC

[RC: 2432]

ANNUAL REPORT AND FINANCIAL STATEMENTS - 2013

BOARD OF DIRECTORSChief (Mrs) Edith I.O. Daniyan - ChairmanEngr. Sulaimon Ibikunle Tella - Managing/Chief ExecutiveMary Abike Daniyan (Miss)Patrick Chinweike Abuka, Esq.Chief Folorunsho DaniyanOtunba Olumide John Atanda OsunsinaLt.Col. Abubakar Sadiq Zakariya Maimalari (Rtd)Kamar Gbadegesin Raji, EsqAngela Hansatu Osarunwense (Mrs) - Alternate to Miss M.A. Daniyan

SECRETARYCrownsec Consults Limited67 Awolowo Way,(Top floor, rear)

Ikeja, Lagos.

REGISTRARSUnion Registrars Limited2, Burma roadApapa, Lagos.

REGISTERED OFFICEPlot 1 Oba Akran AvenueIkeja Industrial EstateIkeja, Lagos.

BANKERSAccess Bank PlcEcobank Nigeria PlcFidelity Bank PlcFirst Bank of Nigeria LimitedGuaranty Trust Bank PlcSkye BankSterling Bank PlcUnion Bank of Nigeria PlcUnited Bank for Africa PlcUnity Bank PlcZenith Bank Plc

AUDITORSBBC PROFESSIONALS(Chartered Accountants)24, Ilupeju By-PassIlupejuLagos

SOLICITORST.B. Akinyeye & Co. Olu Arotiba & CoPavillion Hotels Buildings (2nd Floor), Anifowoshe 70, Broad Street, 44/46 Adegbola Street, Ikeja 3rd Floor, 2nd EntranceP.O.Box 1867, Lagos Lagos

2

[RC:2432 ]

FINANCIAL STATEMENTS - 2013

DIRECTORS AND OTHER CORPORATE INFORMATION

FINANCIAL HIGHLIGHTS

2 0 1 3 2 0 1 2

Increase/

(decrease)

N'000 N'000 %

Revenue 517,346 466,282 11

Loss before taxation (81,812) (90,718) -11

Taxation (10,241) (21,611) -111

Loss transferred to revenue reserve (92,053) (112,329) -22

Total Assets 1,474,730 1,558,623 -6

Total Liabilities 343,523 335,363 3

Total Equity 1,131,207 1,223,260 -7

======== ========

Per N1.00 Share Data:

Loss per share (Kobo) Basic and Diluted (18) (22) (21)

Net assets per share (Kobo) Basic and Diluted 220 238 (8)

3

ANNUAL REPORT AND FINANCIAL STATEMENTS - 2013

FINANCIAL HIGHLIGHT

IPWA PLC

[RC:2432 ]

IPWA Plc

PRINCIPAL ACTIVITIES

RESULTS FOR THE YEAR

2013

N'000

Revenue 517,346 =========

Loss before taxation -81,812

Taxation (10,241) __________

Loss after taxation (92,053) =========

DIVIDEND

PRODUCT DISTRIBUTION

CORPORATE GOVERNANCE

i. Board Composition

ii. Role of the Board

4

Report of the DirectorsFor the year ended 31 December, 2013

The Board consists of a non-executive Chairman, six (6) non-executive directors, and two (2) executive directors,

all bringing high level of competence and expertise. They are professionals and entrepreneurs with vast business

management experience and credible track records. The non-executive directors are independent of the

management and are free from constraints which may materially affect their judgement as directors of the

company.

The Board has the responsibility for ensuring that the company is appropriately managed and achieves its

strategic objectives with the aim of creating a sustainable long term value to the shareholders.

The directors have pleasure in submitting to members their annual report together with the audited financial

statements for the year ended 31 December, 2013.

The directors do not recommend the declaration of any dividend because of the loss sustained in the year.

The company's products are distributed through many distributors across the country.

The company is committed to the best practices and procedures in corporate governance. Its business is

conducted in a fair, honest and transparent manner which conforms to the Code of Best Practices on Corporate

Governance in Nigeria. Examples of the Company's compliance with these corporate governance requirements

during the year under review are as follows:

The principal activities of the company are manufacturing and marketing of paints and lacquers.

IPWA Plc

iii. Record of Directors Attendance at Meetings

No. of No. of

Meetings held Meetings attendedChief (Mrs) Edith I.O. Daniyan 3 3Engr. Sulaimon Ibikunle Tella 3 3Mary Abike Daniyan (Miss) 3 - Patrick Chinweike Abuka, Esq. 3 2Chief Folorunsho Daniyan 3 2Otunba Olumide John Atanda Osunsina 3 - Lt.Col. Abubakar Sadiq Zakariya Maimalari (Rtd) 3 2Kamar Gbadegesin Raji, Esq 3 3Angela Hansatu Osarunwense (Mrs) 3 1

vi. Directors Interest

Indirect DirectUnit Holdings Unit Holdings

Chief (Mrs) Edith I.O. Daniyan 90,958,084 93,750

Engr. Sulaimon Ibikunle Tella - - Mary Abike Daniyan (Miss) - -

Patrick Chinweike Abuka, Esq. - -

Chief Folorunsho Daniyan - 8,993,196

Otunba Olumide John Atanda Osunsina - -

Lt.Col. Abubakar Sadiq Zakariya Maimalari (Rtd) - - Kamar Gbadegesin Raji, Esq 31,104,500 50,000

Angela Hansatu Osarunwense (Mrs) - -

vii. Directors Interest in Contracts

xi. Performance Evaluation of the Board

5

Further to the provision of Section 258(2) of the Companies and Allied Matters Act, CAP C20 LFN 2004, the records of

the Directors' attendance at Board meetings during the year under review is available at the company's Corporate Head

office for inspection. Further, and in line with Corporate Governance principles, details of attendance of the current

Directors at the Board meetings during the year are as follows:

None of the directors has notified the company for the purpose of Section 227 of the Companies and Allied Matters Act,

CAP C20 LFN 2004 of any disclosable interest in contracts with which the company was involved during the year ended

31 December, 2013.

The direct and indirect interests of directors in the issued share capital of the company as recorded in the Register of

directors shareholdings and/or as notified by the directors for the purposes of Sections 275 and 276 of the Companies

and Allied Matters Act, CAP C20 LFN 2004 and the listing requirements of the Nigerian Stock Exchange is as stated

hereunder:

Members of the Board of Directors hold periodic meetings to decide on policy matters and to direct the affairs of the

company, review its operations, finances and formulate growth strategy. Board agenda and reports are provided ahead of

meetings.

Report of the Directors (Continued)For the year ended 31 December, 2013

Names of Directors

The Board has establish a system to undertake a formal and rigorous annual evaluation of its own performance, that of its

Committees, the Chairman and individual Directors. The evaluation system includes the criteria and key performance

indicators and targets for the Board, its Committee and each individual Committee member. The Board engages the

services of external consultants to facilitate the performance evaluation of the Board, its Committees or individual

members.

IPWA Plc

EMPLOYMENT AND EMPLOYEES

Employment policy

Training and development

Health and welfare of employees

6

The company continuously strives to improve its operation to ensure a safe working environment. It also maintains high

standard of hygiene in all its premises through sanitation practices and regular fumigation exercises, as well as

installation of pest and rodent control gadgets. Nutritionally balanced meals are provided in the staff canteen free for the

junior staff and at highly subsidized prices for the senior staff.

It is the company's policy to equip all employees with the skills and knowledge required for the successful performance of

their jobs. We therefore see the investment in our people as major part of our strategic development and have maintained

a consistent policy of training our staff, both locally and internationally to enhance their skills and competence.

The company maintains a staff clinic with a full-time nurse and weekly attendance by a physician. It also offers free

medical services through a health management services provider to all members of staff.

It is the policy of the company that there should be no discrimination in considering applications for employment including

those from physically challenged persons. However, there was no physically challenged person in the employment of the

company during the year.


IPWA Plc

AUDIT COMMITTEE

Mr Emmanuel Abiodun Chairman

Chief Folorunsho Daniyan

Engr.S.I TellaMr Kamar Gbadegesin Raji

Mr B O Ogunbona

QUALITY POLICY

SHAREHOLDING ANALYSIS

The shareholding structure of the company as at 31 December, 2013 is as stated below:

Share range No of No of %

holders shares of holdings1 - 1,000 8,823 3,506,632 0.68

1,001 - 5,000 4,670 8,820,293 1.72

5,001 - 10,000 1,171 4,788,081 0.9310,001 - 50,000 1,391 13,352,539 2.60

50,001 - 100,000 217 6,798,891 1.32100,001 - 1,000,000 150 27,884,537 5.42

1,000,001 - 5,000,000 9 35,984,021 7.00

5,000,001 - above 17 413,005,719 80.33

16,448 514,140,713 100.00

7

The company is committed to the continuous achievement of business success by maintaining its quality leadership in

the paint industry.

This is driven by a quality management system designed to ensure that customers are always provided with high quality

products and services that meet International Standards. Such standards are in full compliance with all statutory and

regulatory requirements and are set out in writing for adherence by all staff at all times.


In compliance with section 359 (4) of the Companies and Allied Matters Act of Nigeria, members of the Audit Committee

were elected at the Annual General Meeting held on 13 December, 2012 Members that served on the Committee during

the year comprise:

Mr Morounfolu Adedapo O Ojutiku

IPWA Plc

SUBSTANTIAL INTEREST IN SHARES

Number %

S B C Limited 90,958,084 17.7

IP Overseas Investment Limited 65,917,317 12.9

Emmyson Nig Limited 30,799,910 6.0

Intercontinental Wapic Insurance Plc 40,170,500 7.8

Honey Badger Limited 31,104,500 6.2

DONATIONS AND SPONSORSHIP

PROPERTY, PLANT AND EQUIPMENT

SUBSEQUENT EVENTS AFTER YEAR END

INDEPENDENT AUDITORS

Dated…………………

By Order of the Board

………………………..Company Secretary

8


According to the register of members, the following shareholders of the company held more than 5 percent of the issued share capital of the company at 31

December, 2013.

2 0 1 3

The company made no donation during the year.

Movements in property, plant and equipment during the year are shown in note 7 on page 29. In the opinion of the directors, the market value of the company's

properties are not lower than the value shown in the financial statements.

There are no subsequent events which could have had material effect on the financial position of the Company as at 31 December, 2013 and profit attributable to

equity holders on that date.

In accordance with section 357 (2) of the Companies and Allied Matters Act, CAP C20 LFN 2004, Messrs BBC Professionals [Chartered Accountants] have

expressed their willingness to continue in office as Independent Auditors to the Company. A resolution will be passed at the Annual General Meeting to authorize

the directors to fix the remuneration of the auditors.

IPWA Plc

(a)

(b)

(c)

……...…………………………

Chairman, Audit Committee

……………………………….

Members of the Audit Committee

Mr Emmanuel Abiodun -

Chief Folorunsho Daniyan -

Engr. S.I Tella -

Mr Kamar Gbadegesin Raji - Director

- Director

Mr B O Ogunbona - Director

9

Report of the audit committeeFor the year ended 31 December, 2013

Mr Morounfolu Adedapo O Ojutiku

Shareholder

In compliance with the provisions of Section 359(6) of the Companies and Allied Matters Act CAP C20 LFN 2004, we the members of the Audit Committee of

IPWA Plc hereby report as follows:

We reviewed the external auditors' Management Control Report together with Management responses; and

We have ascertained the accounting and reporting policies of the company for the year ended 31 December 2013 are in accordance with legal

requirements and agreed with ethical practices.

In our opinion, the scope and planning of the audit for the year ended 31 December 2013 was adequate and management responses to the auditors' finding were

satisfactory.

Shareholder

Chairman/Shareholder

We have received the scope of planning of the audit for the year ended 31 December, 2013 and we observed confirm that they were adequate.

IPWA Plc

(i).

(ii).

(iii).

SIGNED ON BEHALF OF THE BOARD OF DIRECTORS BY

…..…..……….…………………… …..…..……….……………………

DIRECTOR DIRECTOR

10

The Directors have made assessment of the company's ability to continue as a going concern and have no reason to believe that

the company will not remain a going concern in the year ahead.

Keeps proper accounting records that disclose, with reasonable accuracy, the financial position of the company and comply

with the requirements of the Companies and Allied Matters Act and the Insurance Act.

establishes adequate internal controls to safeguard its assets and to prevent and detect fraud and other irregularities

prepares its financial statements using suitable accounting policies supported by reasonable and prudent judgements and

estimates, that are consistently applied.

The directors accept responsibility for the financial statements, which have been prepared using appropriate accounting policies

supported by reasonable and prudent judgements and estimates, in compliance with:

International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB)

The Directors are of the opinion that the financial statements give a true and fair view of the state of the financial position of the

company and of the profit or loss for the year. The directors further accept responsibility for the maintenance of accounting records

that may be relied upon in the preparation of financial statements as well as adequate systems of internal control.

Statements of Directors ResponsibilitiesFor the year ended 31 December, 2013

IPWA PLC

STATEMENT OF DIRECTORS' RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER, 2013

The directors accept responsibility for the preparation of the annual financial statements that give a true and fair view of the

statement of financial affairs of the at the end of the year and of its comprehensive income in the manner required by the Companies

and Allied Matters Act CAP C20 LFN 2004 and Financial Reporting Council of Nigeria Act No 6, 2011.

DIRECTORS' RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

AUDITORS' RESPONSIBILITY

OPINION

REPORT ON OTHER LEGAL REQUIREMENTS

(i)

(ii)

(iii)

Lagos, Nigeria Ayodele Adetuyi

2014

For: BBC PROFESSIONALS

Chartered Accountants

11

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The

procedures selected depend on the auditors' judgement, including the assessment of the risks of material mis-statement of the financial

statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity's

preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the

circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes

evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as

well as evaluating the overall presentation of the financial statements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

IPWA PLC

We have audited the accompanying financial statements of IPWA Plc on pages 16 to 40 which comprise the statement of financial

position as at 31 December 2013, the statement of comprehensive income , statement of cash flows, statement of changes in equity ,

statement of value added and financial summary, the summary of significant accounting policies and other explanatory notes to the

financial statements.

The Company's directors are responsible for the preparation and fair presentation of these financial statements in accordance with

International Financial Reporting Standards and in the manner required by the Companies and Allied Matters Act, CAP C20 LFN 2004.

This responsibility includes: designing, implementing and maintaining internal control relevant to the fair presentation of financial

statements that are free from material mis-statement, whether due to fraud or error; selecting and applying appropriate accounting

policies; and making accounting estimates that are reasonable in the circumstances.

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with

International Standards on Auditing. Those Standards require that we comply with ethical requirements and plan and perform the audit to

obtain reasonable assurance whether the financial statements are free from material mis-statement.

FRC/2013/ICAN/00000002974

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

In our opinion, the financial statements give a true and fair view of the financial position of IPWA Plc as at 31 December, 2013 and of its

financial performance and cash flows for the year then ended in accordance with Companies and Allied Matters Act, CAP C20 LFN 2004

and International Financial Reporting Standard being Standards and Interpretations issued by International Accounting Standards Board

adopted by the Financial Reporting Council of Nigeria.

The Companies and Allied Matters Act requires that in carrying out our audit we consider and report to you on the following matters. We

confirm that:

we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the

purpose of our audit;

in our opinion, proper books of account have been kept by the Company, so far as it appears from our examination of those books;

and

the Company's statement of financial position and statement of comprehensive income are in agreement with the books of account.

IPWA PLC

Note 2013 2012N'000 N'000

AssetsNon-current assetsProperty, plant and equipment 7 1,169,147 1,220,657Intangible assets 8 86 175Financial assets 9 411 411

1,169,644 1,221,243

Current assetsInventories 10 102,096 135,324Trade and other current receivables 11 186,379 187,455Cash and cash equivalents 12 16,611 14,601

305,086 337,380

Total assets 1,474,730 1,558,623

EquityShare capital 21 257,070 257,070 Share premium 22 217,610 217,610 Retained earnings 24 656,527 748,580 Total Equity 1,131,207 1,223,260

LiabilitiesNon-current liabilitiesRetirement benefit obligations 15 52,313 49,838 Deferred tax liabilities 17.3 33,886 29,781

Total non-current liabilities 86,199 79,619

Current liabilitiesFinancial liabilities 14 21,336 28,686Trade and other payables 13 209,712 205,670Current tax liabilities 17.2 26,275 21,388

Total current liabilities 257,324 255,744

Total liabilities 343,523 335,363

Total liabilities and equity 1,474,730 1,558,623

…………..…..………………………………

…..…..……….………………………………

12

The financial statements and notes on pages 16 to 38 were approved by the Board of Directors on…………………... and

signed on its behalf by:

Statement of Financial Positionfor the year ended 31 December 2013

D i r e c t o r s

31 December

IPWA PLC

Note 2013 2012

N'000 N'000

Revenue 19 517,346 466,282

Cost of sales (331,189) -303,915

Gross profit 186,157 162,367

Other income 20 1,412 1,137

Selling and distribution expenses (134,767) -116,941

Administrative expenses (124,340) -135,766

Results from operating activities -71,537 -89,203Finance income - 1,318Finance costs (10,275) -2,832

Net finance (cost)/income -10,275 -1,515

Loss before taxation 16 -81,812 -90,718

Taxation 17 (10,241) -21,611

Loss for the year -92,053 -112,329

Loss for the period recognised in the income statement -92,053 -112,329

Property, plant and equipment revaluation surplus 23 - -

Total comprehensive income -92,053 -112,329

Loss per share

Loss per share (kobo) -26 -22

The notes on pages 16 to 38 form an integral part of these financial statements.

13

Statement of Comprehensive Income For the year ended 31 December 2013

IPWA Plc

Share Share Retained Totalcapital premium earnings equity

N'000 N'000 N'000 N'000

To 1 January, 2012 257,070 217,610 876,931 1,351,611

Other comprehensive income (112,329) -112,329

Other movements (16,022) -16,022________ _________ _________ _________

To 31 December, 2012 257,070 217,610 748,580 1,223,260------------- -------------- --------------- ------------------

To 1 January, 2013 257,070 217,610 748,580 1,223,260

Other comprehensive income -92,053 -92,053

Other movements- ________ _________ _________ _________

To 31 December, 2013 257,070 217,610 656,527 1,131,207------------- -------------- --------------- ------------------


14

Statement of changes in equityfor the year ended 31 December, 2013

IPWA PLC

Note 2013 2012

N'000 N'000

Cash flows from operating activities

Cash generated from operations 18 20,878 19,251

Tax paid 17.2 (1,249) -12,946

Net cash flows generated from operating activities 19,629 6,305

Cash flows from investing activities

Interest received - 1,318

Purchase of property, plant and equipment (294) -3,626

Proceeds on disposal of property, plant and equipment 300 -

Net cash flows from investing activities 6 -2,308

Cash flows from financing activities

Interest payment (10,275) -2,832

Cash generated from financing activities -10,275 -2,832

Net decrease in cash and cash equivalents 9,360 1,165

Cash and cash equivalents at 1 January -14,085 -15,250

Cash and cash equivalents at 31 December 12 -4,725 -14,085


15

Statements of Cash Flowsfor the year ended 31 December 2013

IPWA PLC

1 REPORTING ENTITYIAS 1.138(a) -(b)

2 BASIS OF PREPARATION(a) Statement of compliance

(b) Basis of measurement

(c) Functional and presentation currency

(d) Use of estimates and judgements

- measurement of defined benefit obligations; and

- provisions and contingencies.

3. New accounting standards issued but not yet adopted

i. Ammendments to IAS 32 titled Offsetting Financial Assets and Financial Liabilities :

16

The Directors anticipate that the new standards, amendments and interpretations will be adopted in the company's financial

statements when they become effective. The company has assessed, where practicable, the potential impact of all these

new standards, amendments and interpretations that will be effective in future periods.

The ammendments address inconsistencies in current practice when applying the offseting criteria in IAS 32, mainly by

clarifying the meaning of currently has a legally enforeceable right of set-off and that some gross settlement systems may

be considered equivalent to net settlement. They are effective for annual periods beginning on or after 1 January 2014.

Notes to the financial statements for the year ended 31 December, 2013

IPWA Plc was incorporated as a public limited liability company on 23 July, 1961. Its shares were listed on the Nigerian

Stock Exchange (NSE) in November 1979.

The financial statements have been prepared under the historical cost basis, except for items measured at fair value and

the use of actuarial methods for estimating certain employee benefits.

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) being

Standards and Interpretations isssued by the International Accounting Standards Board (IASB) in force at 31 December,

2012.

IPWA Plc is a company domiciled in Nigeria. The company is principally engaged in the manufacture and marketing of paint

and paint related products.

The following new standards, amendments and interpretations have been issued by the IASB but are not yet effective for

the financial year beginning 1 January, 2013 and have not been early adopted by IPWA Plc (the list does not include

information about new pronouncements that affect interim financial reporting or first-time adopters of IFRS since they are

not relevant to the Company).

These Company's financial statements are presented in Naira, which is the Company’s functional currency. All financial

information presented in Naira has been rounded to the nearest thousand.

Information about critical judgements in applying accounting policies that have the most significant effect on the amounts

recognized in the financial statements is included in the following notes:

The preparation of the financial statements in conformity with IFRS requires management to make judgements, estimates

and assumption that affect the application of accounting policies and reported amounts of assets, liabilities, income and

expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are

recognized in the year in which the estimates are revised and in any future years affected.

IPWA PLC

ii. IFRS 9 Financial Instruments :

The derecognition provisions are carried over almost unchanged from IAS 39.

4. SIGNIFICANT ACCOUNTING POLICIES

(a) Going Concern

(b) Segment reporting

17

This standard introduces new requirements for the classification and measurement of financial assets and financial liabilities

and for derecognition.

IFRS 9 requires all recognised financial assets that are within the scope of IAS 39 Financial Instruments: Recognition and

Measurement to be subsequently measured at amortised cost or fair value. Specifically, debt investments that are held

within a business model whose objective is to collect the contractual cash flows and that have contractual cash flows that

are solely payments of principal and interest on the principal outstanding are generally measured at amortised cost at the

end of subsequent accounting periods. All other debt investments and equity investments are measured at their fair value at

the end of subsequent accounting periods.

The accounting policies set out below have been applied consistently to all periods presented in these financial statements.

The Directors have a reasonable expectation that the Company has adequate resources to continue in operational

existence for the foreseeable future. The Company continues to adopt the going concern basis in preparing its financial

statements.

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision

maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the

operating segments, has been identified as the Board of Directors that makes strategic decisions.

IFRS 9 is effective for annual periods beginning on or after 1 January, 2015. the Directors anticipate that IFRS 9 will be

adopted in the Company's financial statements when it becomes mandatory and that the application of the new Standard

might have a significant impact on amounts reported in respect of the Company's financial assets and financial liabilties.

However, it is not practicable to provide a reasonable estimate of that effect until a detailed review has been completed.

Notes to the financial statements

The most significant effect of IFRS 9 regarding the classification and measurement of financial liabilities relates to the

accounting for changes in fair value of a financial liability (designated as fair value through profit or loss) attributable to

changes in the credit risk of that liability. Specifically, under IFRS 9, for financial liabilities that are designated as at fair value

through profit or loss, the amount of change in the fair value of the financial liability that is attributable to changes in the

credit risk of that liability is recognised in other comprehensive income, unless the recognition of the effects of changes in

the liability's credit risk in other comprehensive income would create or enlarge an accounting mismatch in profit or loss.

Changes in fair value attributable to a financial liability's credit risk are not subsequently reclassified to profit or loss.

Currently, under IAS 39, the entire amount of the change in the fair value of the financial liability designated as at fair value

through profit or loss is recognised in profit or loss.

for the year ended 31 December, 2013

IPWA PLC

(c) Foreign currency transactions

(d) Property, Plant and Equipment

Purchased software that is integral to the functionality of the related equipment is capitalized as part of the equipment.

Land NIL

Buildings 50 years

Furniture/Fittings and equipment 5 years

Vehicles 3 years

Plant and machinery 10 years

Computer equipment 4 years

18

All other assets are stated at historical cost less accumulated depreciation and accumulated impairment losses. All other

Property, Plant and Equipment are stated at historical cost or valuation less accumulated depreciation and impairment

losses. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Cost may also include

transfers from equity of any gains/ losses on qualifying cash flows hedges of foreign currency purchases of Property, Plant

and Equipment.

Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when

it is probable that future economic benefits associated with the item will flow to the Company and the cost can be measure

reliably. The carrying amount of the replaced cost is derecognized. All other repairs and maintenance are charged to the

income statement during the financial period in which they are incured.

An item of Property, Plant and Equipment is derecognised on disposal or when no future economic benefits are expected

from its use. Gains or losses on disposal or de-recognition of an item of Property, Plant and Equipment are determined by

comparing the proceeds from disposal with the carrying amount of Property, Plant and Equipment, and are recognized in

income statement.

Foreign currency transactions are translated into Naira using the exchange rates prevailing at the dates of the transactions

or valuations where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such

transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign

currencies are recognized in the income statement, except when deferred in other comprehensive income as qualifying

cash flow hedges and qualifying net investment hedges.

Depreciation is provided on components that have homogenous useful lives by using the straight line method so as to

depreciate the initial cost down to the residual value over the estimated useful lives. The useful lives are as follows:


Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the income

statement within 'finance income or cost'. All other foreign exchange gains and losses are presented in the income

statement within 'other gains / (losses) - net'.

Land and building held for use in the production or supply of goods or services, or for administration purposes, are stated in

the statement of financial position at cost at the date of transition to IFRS less accumulated depreciation and any

accumulated impairment losses.

IPWA PLC

(e) Intangible assets

(i) Computer Software

•

•

•

•

•

•

(ii) Ammortisation of Intangible assets

(f) Financial assets(i) classification:

- Financial assets at fair value through profit or loss

- Loans and receivables

- Available-for-sale financial assets

19


Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an

active market. They are included in current assets, except for maturities greater than 12 months after the end of the

reporting period. These are classified as non-current assets. the Company's loans and receivables comprise trade and other

receivables and cash and cash equivalents in the statement.

Directly attributable costs that are capitalized as part of the software product include the software development employee

costs and an appropriate portion of relevant overheads. Other development expenditure that do not meet these criteria are

recognized as an expenses as incurred. Development costs previously recognized as an expense are not recognized as an

asset in a subsequent period.

management intends to complete the software product and use or sell it;

Computer software development costs recognized as assets are amortized over their estimated useful lives.

Available-for-sale financial assts are non-derivatives that are either designated in this category or not classified in any of the

other categories. They are included in non-current assets unless the investment matures or management intends to dispose

of it within 12 months of the end of the reporting period.

Financial assets at fair value through profit or loss are financial assets held for trading. A financial asset is classified in this

category if acquired principally for the purpose of selling in the short term. Derivatives are also categorized as held for

trading unless they are designated as hedges. Assets in this category are classified as current assets if expected to be

settled within 12 months; otherwise, they are classified as non-current.

the expenditure attributable to the software product during its development can be reliably measured.

it can be demonstrated how the software product will generate probable future economic benefits;

Intangible assets are amortized on a straight line basis in the income statement over their estimated useful lives, from the

adequate technical, financial and other resources to complete the development and use or sell the software product are

available; and

there is an ability to use or sell the software product;

Assets residual values and useful lives are reviewed and adjusted if appropriate, at the end of each reporting date.

The Company classifies its financial assets in the following categories: at fair value through profit or loss, loans and

receivables, and available for sale. The classification depends on the purpose for which the financial assets were acquired.

Management determines the classification of its financial assets at initial recognition.

it is technically feasible to complete the software product and use or sell it;

Acquired computer software licenses are capitalized on the basis of the costs incurred to acquire and bring to use the

specific software. These costs are amortized over their estimated useful lives. Costs associated with maintaining computer

software programmes are recognized as an expenses as incured. Development costs that are directly attributable to the

design and testing of identifiable and unique software products controlled by the Company are recognized as intangible

assets when the following criteria are met:

Where an indication of impairment exists, an asset's carrying amount is written down immediately to its recoverable amount

if the asset's carrying amount is greater than its estimated recoverable amount. The gain or loss arising on the disposal or

retirement of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and

is recognized in the income statement for the period.

IPWA PLC

(ii) Recognition and measurement:

(iii) Offsetting financial instruments

(iv) Impairment of financial assets

•

•

•

•

•

•

•

20

Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is a

legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the

asset and settle the liability simultaneously.

significant financial difficulty of the issuer or obligor;

The Company assesses at the end of each reporting period whether there is objective evidence that a financial assets or

Company of financial assets is impaired. A financial asset or a company of financial assets is impaired and impairment

losses are incurred only if there is objective evidence of impairment as a result of one or more events that occured after the

initial recognition of the asset (a 'loss event') and that loss events (or events) has an impact on the estimated future cash

flows of the financial asset or Company of financial assets that can be reliably estimated. The criteria that the company

uses ton determine that there is objective evidence of an impairment loss include:

it becomes probable that the borrower will enter bankruptcy or other financial reorganization;

adverse changes in the payment status of borrowers in the portfolio; and national or local economic conditions that

correlates on the assets in the portfolio.

the disappearance of an active market for that financial asset because of financial difficulties; or

Gains or losses arising from changes in the fair value of the financial assets at fair value through profit or loss category are

presented in the income statement within 'other (losses) / gains - not in the period in which they arise. Dividend income from

financial assets at fair value through profit or loss is recognized in the income statement as part of other income when the

Company's right to receive payments is established. Changes in the fair value of monetary and non-monetary securities

classified as available for sale are recognized in other comprehensive income. When securities classified as available for

sale are sold or impaired, the accumulated fair value adjustments recognized in equity are included in the income statement

as 'gains and losses from investment securities'.

a breach of contract, such as a default or delinquency in interest or principal payments;


The Company first assesses whether objective evidence of impairment exists. For loans and recievables category, the

amount of the loss is measured as the difference between the asset's carrying amount and the present value of estimated

future cash flow (excluding future credit losses that have not been incurred) discounted at the financial asset's original

effective interest rate. The carrying amount of the asset is reduced and the amount of the loss is recognised in the income

statement. If a loan or held-to-maturity investment has a variable interest rate, the discount rate for measuring any

impairment loss is the current effective interest rate determined under the contract.

Regular purchases and sales of financial assets are recognized on the trade-date the date on which the Company commits

to purchase or sell the asset. Investments are initially recognized at fair value plus transaction costs for all financial assets

not carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially

recognized at fair value, and transaction costs are expensed in the income statement. Financial assets are derecognized

when the rights to received cash flows from the investments have expired or have been transferred and the Company has

transferred substantially all risks and rewards of ownership. Available-for-sale financial assets and financial assets at fair

value through profit or loss are substantially carried at fair value. Loans and receivables are subsequently carried at

amortized cost using the effective interest method.

Notes to the financial statements (Continued)

observable data indicating that there is a measurable decrease in the estimated future cash flows from a portfolio of

financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with the

the company, for economic or legal reasons relating to the borrower's financial difficulty, granting to the borrower a

concession that the lender would not otherwise consider;

Interest on available-for-sale securities calculated using the effective interest method is recognized in the income statement

as part of other income. Dividends on available-for-sale equity instruments are recognized in the income statement as part

of other income when the Company's right to receive payments is established.

IPWA PLC

(v) Impairment of non - financial assets

(g) Inventories

(h) Trade recievables

(i) Research and development

(j) Cash, cash equivalents and bank overdrafts

(k) Borrowings

(l) Trade payables

21

Spare parts and servicing equipment are usually carried as inventory and recognized in profit or loss as consumed.

However, major spare parts and stand-by equipment qualify as property, plant and equipment when the Company expects

to use them during more than one period. Similarly, if the spare parts and servicing equipment can be used only in

connection with an item of property, plant and equipment, they are accounted for as property, plant and equipment. Such

classified spares are depreciated as property, plant and equipment over the useful life on a straight line basis.

Trade recievables are recognized initially at fair value and subsequently measured at amortized cost using the effective

interest rate method, less provision for impairment. The collectability of trade recievables is reviewed on an ongoing basis. A

provision for impairment of trade recievables is established when there is objective evidence that the Company will not be

able to collect all amounts due according to the original terms of the recievables. The amount of the provision is the

difference between the asset's carrying amount and the present value of estimated future cash flows. The amount of the

provision is recognized in the income statement.


Inventories are stated at the lower of cost and estimated net relizable value. Costs comprise direct materials costs and

where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their

present location and condition. Cost is calculated using the weighted average method. Net realizable value represents the

estimated selling price less all estimated costs of completion and costs to be incurres in marketing, selling and distribution.

Research and development expenditure is charged agains profits in the year in which it is incurred, inless it meets the

criteria for capitalisation set out in IAS 38 'Intangible assets'.

Cash, cash equivalents and bank overdrafts includes cash at bank and in hand plus short-term deposits less overdrafts.

Short-term deposits have a maturity of less than three months from the date of acquisition. Bank overdrafts are repayable

on demand and form an integral part of the Company's cash management.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from

suppliers. Accounts payable are classified as current liabilities if payments is due within one year or less. If not, they are

presented as non-current liabilities. Trade payables are recognises initially at fair value and subsequently measured at

amortised cost using the effective interest method.

As a practical expedient, the company may measure impairment on the basis of an instrument's fair value using an

observable market price. If in an subsequent period, the amount of the impairment loss decreases and the decrease can be

related objectively to an event occurring after the impairment was recognised (such as an improvement in the debtor's credit

rating), the reversal of the previously recognised impairment loss is recognized in the income statement.

Interest- bearing bank loans and overdrafts are recorded at the proceeds received, net of direct issue costs. Finance

charges, including premiums payable on settlement or redempton and direct issue costs, are accounted for on an accruals

basis through the income statement using the effective interest method and are added to the carrying amount of the

instrument to the extent they are not settled in the period in which they arise.


Assets that have an indefinite useful life - for example, goodwill or intangible assets not ready for use - are not subject to

amortisation and are tested annually for impairment. Assets that are subject to amortization are reviewed for impairment

whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment

loss is recognized for the amount by which the assets carrying amount exceeds its recoverable amount. The recoverable

amount is the higher of an asset's fair value less costs to sell and value in use. For the purposes of assessing impairment,

assets are tested at the lowest levels for which there are seperately identifiable cash flows (cash-generating units). Non-

financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at each

reporting date.

IPWA PLC

(m) Investments

(n) Provisions

(o) Tax

(i) Current tax:

•

•

(ii) Deferred tax:

•

22

Tertiary Education tax - Tertiary education tax is based on assessable income of the Company and is governed by the

Tertiary Education Trust Fund (Establishment) Act LFN 2011.

A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences to the extent that

it is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are reviewed

at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefits will be realized.

Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using

tax rates enacted or substantively enacted at the reporting date.

Deferred tax assets and liabilities are offset if there ia a legally enforceable right to offset current tax liabilities and assets,

and they relate to taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they

intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized

simultaneously.

Provisions are measured at the present value of the expenditures expected to be acquired to settle the obligation using a

pre-tax rate that reflects current market assessments of the time value of money and risks specific to the obligation. The

increase in the provision due to passage of time is recognised as interest expense.


The measurement of deferred tax reflects the tax consequences that would follow the manner in which the Company

expects, at the end of the reporting period, to recover or settle the carrying amounts of its assets and liabilities. For

investment property that is measured at fair value, the presumption that the carrying amount of the investment property will

be recovered through sale has not been rebutted.


Investments are classified as either held-to-maturity, held-for-trading, loans and recievables or available-for-sale. Held-to-

maturity investments and loans and recievables are measured at amortised cost. Held-for-trading and available-for-sale

investments are measured at subsequent reporting dates at fair value. Where securities are held-for-trading purposes, gains

and losses arising from changes in fair value are included in the income statement for the period. For available-for-sale

investments, gains and losses arising from changes in fair value are recognised directly in equity, until the security is

disposed of or is determined to be impaired, at which time the cumulative gain or loss previously recognised in equity is

included in the income statements for the period.

Provisions are recognised when the Company has a present legal or constructive obligation as a result of a past event, and

it is probable that the Company will be required to settle that obligation and the amount has been reliably estimated.

Provisions for restructuring costs are recognised when the Company has a detailed formal plan for the restructuring that has

been communicated to affected partied. Provisions are not recognised for future operating losses.

Taxable temporary differences arising on the initial recognition of goodwill.

Companies Income tax - This relates to tax on revenue and profit generated by the company during the year, to be taxed

under the Companies Income Tax Act Cap C21, LFN 2004 as amended to date.

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates statutorily

enacted at the reporting date , and any adjustment to tax payable in respect of previous years. The company is subject to

the following types of current income tax:

Deferred tax is recognised in respect of temporary differences between the carrying amount of assets and liabilities for

financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for:

Income tax expense represents the sum of current tax expense and deferred tax expense. Current tax and deferred tax are

recognised in income statement except to the extent that it relates to a business combination, or items recognised directly in

equity or in other comprehensive income.

IPWA PLC

(iii) Tax exposures:

(p) Employee benefits:

(i) Defined contribution scheme:

(ii) Short-term employee benefit:

(q) Revenue recognition

i) Sale of goods

ii) Interest income

23

Revenue comprises the fair value of the consideration received or receivable for the sale of goods and services in the

ordinary course of the Company's activities. Revenue is shown net of value-added tax, returns, rebates and discounts.

The Company operates a defined contribution plan which is funded by contributions from the Company and the employees.

The company's contribution is recognised as employee benefit expenses and charged to the income statement. The

contributions of both the company and the employees are paid on a monthly basis to a pension fund administrator. The

company has no legal or constructive obligation to pay further contributions if the pension fund administrator does not hold

sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. The

contributions are recognised as employee benefit expenses when they are due.

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is

provided.

A liability is recognised for the amount expected to be paid under short-term cash bonus or profit sharing plan if the

Company has a present legal or constructive obligation to pay this amount as a result of past services [provided by the

employee, and the obligation can be estimated reliably.

In determining the amount of current and deferred tax, the Company takes into account the impact of uncertain tax postions

and whether additional taxes and interest may be due. This assessment relies on estimates and assumptions and may

involve a series of judgements about future events. New information may become available that causes the Company to

change its judgement regarding the adequacy of existing tax liabilities; such changes to tax liabilities will impact tax

expenses in the period that such determination is made.

The products are often sold with discounts and rebates. Sales are recorded based on the price specified on the sales

invoice net of the discounts, rebates and returns at the time of sale.

Sales are also recognised when the customer self-collect the product directly at the company premises during which the

risks and rewards of ownership passes to the customer at the point of loading after the customer's delivery truck leaves the

company premises.

No element of financing is deemed present where sales are made on agreed credit terms which are consistent with the

market practice.

Interest income is recognised using the effective interest method. When a loan and receivable is impaired, the company

reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at the original

effective interest rate of the instrument, and contnues unwinding the discount as interest income. Interest income on

impaired loan and recievables are recognised using the original effective interest rate.

The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future

economic benefits will flow to the entity and specific criteria have been met for each of the Company's activities as

described below:


The company manufactures and sells a range of products to the distributors and dealers. Sale of goods are recognised

when the company has delivered product to the customers and there is no unfulfilled obligation that could affect the

customers' acceptance of the products. Delivery does not occur until the products have been shipped to the specified

locations; the risks of obsolescence and loss have been transferred to the customers and either the customers have

accepted the products in accordance with the sales contract, the company has objective evidence that all criteria for

acceptance have been satisfied.


IPWA PLC

(r) Dividend distribution

(s) Earnings per share

(t) Share Capital

5 Risk management

(a) Credit risk:-

Mitigating Measures:-

•

•

•

b) Liquidity risk:-

Mitigating Measures:- •

•

•

•

24

Notes to the financial statements (Continued)for the year ended 31 December, 2013

The Company presents earnings per share (EPS) data for its ordinary shares. EPS is calculated by dividing the profit or

loss attributable to ordinary shareholders of the Company by the number of ordinary shares outstanding during the year.

The company has only one class of shares. Ordinary shares which are classified as equity. When new shares are issued,

they are recorded in share capital at their par value. The excess of the issue price over the par value is recorded in the

share premium reserve.

All credits are secured by insurance or bank bonds.

Credit application follows rigorous and extensive credit review and approval process.

Dividend distribution to the Company's shareholders is recognised as a liability in the company's financial statements in the

period in which the dividends are approved by the Company's shareholders. In respect of dividends these are recognised

once paid.

Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity, net of any

tax effects.

Risk management is inherent in the business operations of the company. Management has set up processes and systems

to identify, assess, monitor and control business risks including the following :-

Efficient funds management to eliminate idle funds, meet obligations as they fall due and reduce interest expenses to the

Efficient Naira facility management

This refers to the risk of company's inability to finance its operation and meet its obligation when they become due without

incurring unacceptable losses.liquidity risk includes the inability to manage unplanned decreases or changes in funding

sources.

Efficient and effective working capital management.

This refers to the risk that a trade debtor will default by failing to make payments in accordannce with the agreed credit

terms and conditions. The possible impact of the credit risk is poor Account Receivable assets quality arising from high level

of bad and doubtful debts and possible impairment of shareholders' funds. The carrying amount of financial assets

represents the maximum credit exposure.

Once conditions are precedent to credit utilization are met by the customer, the approved credit is updated, monitored and

The Treasury Department is well structured and equipped under the management of a very experienced and well trained

team.

IPWA PLC

c) Market risk:-

•

•

•


•

•

•

•

d) Operational Risk :-


•

•

•

•

•

•

•

•

•

•

•

•

25

We continually train talents to meet our future skill requirements.

Efficient management of exchange and interest rate risks including generation of relevant risk management reports for the

monitoring and review on a daily and weekly basis.

Existence of robust IT business continuity and disaster recovery programmes

All insurable business risks are assessed, identifed and adequately covered/insured.

Existence of robust ERP and comprehensive computerisation of internal business processes, systems and procedures.

We also have a strong, active and experienced Internal Audit Team. Internal Audit Reports highlighting control weaknesses

are presented periodically to Management and Audit Committee.

Continuous recruitment of qualified haulage contractors to meet corporate requirements and prevent shortage of delivery

trucks. We also acquired and managed some of our delivery trucks.

Efficient management of the commodity risk by the Logistics and Supplies Department with a full-fledged experienced and

well trained Team in the area of paint dynamics and procurement strategies.

The commodity risk affects the paint industry as the paint prices are determined at the Nigerian commodity markets. We

Market risk is the risk of financial loss due to the change in value of the market risk factors. The company is faced with the

following market risk factors.


Monitor the money, capital and foreign exchange markets including micro and macroeconomic environment on a daily basis.

Financial statements are prepared periodically on monthly and quarterly bases for the review of the Management and the

Board. Performance are monitored and compared with budgets.

Existence of documented standard operating procedures for all business activities.

All key positions have a minimum of one under-study who can assume the roles immediately with minimum support, and

eventually grow into the position.

Interest rate risk:- The risk that interest rate will change adversely at the money market.

Current risk:- The risk that foreign exchange rates will fluctuate unfavorably at the foreign exchange market.

Commodity risk:- The risk that paint prices will significantly increase at the Nigerian commodity markets.


This relates to the risk of loss resulting from inadequate or failed internal processes, controls, procedures, people, and

systems. Operational risk is inherent in the business activities. These include risk of inadequate haulage partners required

to achieve the company’s objectives in terms of sales volume and profit; risk of wastages, downtime and other associated

losses arising from inefficient plant operations; risk of breakdown of ERP and IT infrastructure or outright loss of critical

operational/business data and information; risk of loss of company assets due to unexpected disaster which may affect

business operations; risk of breakdown of internal control systems and misstatement of financial statements.

Efficient and effective maintenance culture to prevent down time and inefficient production operations.

Control activities are an integral part of the company's day to day operations and are defined at every business area.

The company's internal control and risk management systems ensure that material errors or incisistencies in the financial

statements are identified and corrected. Financial Statements are prepared in accordance with accounting standards and

policies.

IPWA PLC

6. SIGNIFICANT JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Revenue recognition

Allowance for doubtful receivables

Asset impairment tests

Net realisable value of inventories

26

The determination of the recoverability of the amount due from customers involves the identification of whether there is any

objective evidence of impairment. Bad debts are written off when identified, to the extent that it is feasible that impairment

and uncollectibility are determined individually for each item. In cases where that process is not feasible, a collective

evaluation of impairment is performed. As a consequence, the way individual and collective evaluations are carried out and

the timing relating to the identification of objective evidence of impairment require significant judgement and may materially

affect the carrying amount of receivables at the reporting date.

A financial asset or a group of financial assets, other than those categorised at fair value through profit or loss, are

assessed for indicators of impairment at the end of each reporting period. Impairment exists only when the Company

ascertains that a "loss event" affecting the estimated future cash flows of the financial asset has occurred. It may not be

possible to identify a single, discrrete event that caused the impairment and moreover to determine when a loss event has

occurred might involve the exercise of significant judgement.

The amount of impairment loss recognised for financial assets carried at amortised cost is the difference between the

asset's carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate.

The impairment analysis of intangible assets (Computer Software) requires an estimation of the value in use of the asset or

the cash-generating unit to which the assets are allocated. Estimation of the value in use is primarily based on discounted

cash flow models which require the Company to make an estimate of the expected future cash flows from the asset or the

cash-generating unit and also to choose an appropriate discount rate in order to calculate the present value of the cash

flows.

Inventories are stated at the lower of cost and net realisable value. The cost of inventories is written down to their estimated

realisable value when their cost may no longer be recoverable, such as when inventories are damaged or become wholly or

partly obsolete or their selling prices have declined. In any case, the realisable value represents the best estimate of the

recoverable amount, is based on the most reliable evidence available at the reporting date and inherently involves estimates

regarding the future expected realisable value. The benchmarks for determining the amount of write-downs to net realisable

value include ageing analysis, technical assessment and subsequent events. In general, such an evaluation process

requires significant judgement and may materially affect the carrying amount of inventories at the reporting date.

In preparing its financial statements, the Company has made significant judgements, estimates and assumptions that

impact on the carrying value of certain assets and liabilities, income and expenses as well as other information reported in

the notes. The Company periodically monitors such estimates and assumptions and make sure that they incorporate all

relevant information available at the date when financial statements are prepared. However, this does not prevent actual

figures differing from estimates.


The judgements made in the process of applying the Company's accounting policies that have the most significant effect on

the amounts recognised in the financial statements, and the estimates and assumptions that have a significant risk of

causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed

below.

The Company makes provisions for trade discounts, volume rebates and charge back for product returns allowed by the

sale contracts when recognising the revenue derived from sales of its products. Such deductions represent estimates, which

are subject to judgements and assumptions based on past experience as well as the company's knowledge available at the

time the estimate is made.


IPWA PLC

Deferred tax estimation

Actuarial assumptions on defined benefit retirement plans

27


Recognition of deferred tax assets and liabilities involves making a series of assumptions. As far as deferred tax assets are

concerned, their realisation ultimately depends on taxable profits being available in the future. Deferred tax assets are

recognised only when it is propable that taxable profits will be available against which the deferred tax asset can be utilised

and it is probable that the entity will earn sufficient taxable profit in future periods to benefit from a reduction in tax

payments. This involves the Company making assumptions within its overall tax-planning activities and periodically

reassessing them in order to reflect changed circumstances as well as tax regulations. Moreover, the measurement of a

deferred tax asset or liability reflects the manner in which the entity expects to recover the asset's carrying value or settle

the liability.

Accounting for defined benefit plans may be complex because actuarial assumptions are required to measure the obligation

and the expense, with the posibility that actual results differ from the assumed results. These differences are known as

actuarial gains and losses. Defined benefit obligations are measured using the Projected Unit Method, according to which

the Company has to make a reliable estimate of the amount of benefits earned in return for services rendered in current and

prior periods, using actuarial techniques.


IPWA Plc

7. PROPERTY, PLANT AND EQUIPMENT

Furniture Plant and Motor Computer And

Land and Building machinery vehicles Equipment Equipment Total

a) COST N'000 N'000 N'000 N'000 N'000 N'000 N'000

At 1 January, 2013 27200 1,096,326 155,786 35,816 1,628 6,687 1,296,243

Of additions - - - - 235 59 294

Of Disposal - - - -2,945 - - -2,945_________ _________ _________ __________ _________ ________ ________

At 31 December, 2013 27,200 1,096,326 155,786 32,871 1,863 6,746 1,320,792

---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------

DEPRECIATION

To 1 January, 2013 - 44,941 31,088 23,875 713 2,169 102,786

Charge for the year - 22,471 15,579 10,958 465 1,349 50,822

Of Disposal - - - -1,963 - - -1,963_________ _________ _________ _________ ________ ________ ________

To 31 December, 2013 - 67,412 46,667 32,870 1,178 3,518 151,645------------- ------------- -------------- --------------- ------------- ------------ ------------

CARRYING AMOUNT

At 31 December, 2013 27,200 1,028,914 109,119 1 685 3,228 1,169,147

======== ======== ========= ========= ======= ======= =========

At 31 December, 2012 27,200 1,051,385 124,698 11,941 915 4,518 1,220,657

======== ======== ======== ======== ======= ======= =========

8. INTANGIBLE ASSETS

2013 2012

COST/VALUATION N'000 N'000

At 1 January 598 598

Addition - -

At 31 December 598 598 ====== ======

AMMORTISATION

At 1 January 423 333

Addition 90 90

At 31 December 513 423

====== ======

CARRYING AMOUNT

At 31 December 86 175 ====== ======

28

Notes to the financial statementsfor the year ended 31 December, 2013

IPWA Plc

2 0 1 3 2 0 1 29 FINANCIAL ASSETS ₦'000 ₦'000

Long term deposit at 1 January 411 411 ____ ____

Fair value of long term deposit at 31 December 411 411

==== ====

2 0 1 3 2 0 1 2

₦'000 ₦'000

10 INVENTORIES

Raw materials and consumables 31,403 54,128

Work-in-progress 4,190 985

Packaging materials 4,756 9,956

Finished goods 61,747 70,255

_______ _______

102,096 135,324

======= =======

This excludes spare parts which are to be classified as property, plant and equipment

2 0 1 3 2 0 1 2₦'000 ₦'000

11 TRADE AND OTHER CURRENT RECEIVABLESTrade debtors (Net) 134,696 140,815

________ ________Other current receivablesPayment on account of suppliers 268 268 Prepayments 1,447 522 Other debtors 24,186 20,068 Withholding tax recoverable 25,782 25,782

_______ _______51,683 46,640

------------- -------------186,379 187,455

======= =======

There is no material difference between the fair value of receivables and their carrying amount.

Analysis of trade receivablesThe analysis below analyses changes in the allowances for impairment losses in the year.

2 0 1 3 2 0 1 2₦'000 ₦'000

Trade receivablesTotal trade receivables 235,701 237,020

Impairment Loss for trade receivable -101,005 -96,205

------------- -------------

Net 134,696 140,815

======= =======

29

Notes to the financial statementsFor the year ended 31 December, 2013

IPWA Plc

2 0 1 3 2 0 1 2

₦'000 ₦'000

12 CASH AND CASH EQUIVALENT

Bank and cash balances for purpose of statement of financial position 16,611 14601

Bank Overdraft -21,336 -28,686______ ______

Cash and Cash equivalent for for purpose of statement of Cashflow -4,725 -14,085======= =======

There is no material difference between the fair value and the carrying amount of cash equivalents.

2 0 1 3 2 0 1 2

₦'000 ₦'000

13 TRADE PAYABLES AND OTHER CURRENT LIABILITIES

Trade creditors 38,165 55,856

______ ______

Unclaimed dividends 1,652 1,652

Provisions and accruals 14,924 13,164

Other creditors 136,289 116,972

Directors current account 18,678 18,026

________ ________

171,543 149,814

------------- -------------

209,707 205,670

======= =======

2 0 1 3 2 0 1 2

14 FINANCIAL LIABILITIES ₦'000 ₦'000

Bank overdrafts 14,161 28,686

Bank short term loan 7,175 - ______ ______

21,336 28,686

====== ======

30


The carrying amount of trade and other payables and accrued liabilities is considered to be in line with their fair value at the reporting

date.

IPWA Plc

15 RETIREMENT BENEFIT OBLIGATIONS

The company has both defined benefit and defined contribution plans.

Defined contribution plan

Defined benefit plan

The amounts recognised in the statement of financial position are determined as follows:

2 0 1 3 2 0 1 2

₦'000 ₦'000

Present value of retirement benefit obligation 52,313 49,838

========= =========

31

A defined benefit plan is a pension plan that defines an amount of pension benefit that an employee will receive on retirement, usually

dependent on one or more factors, such as age, years of service and compensation.


The liability recognised in the statement of financial position in respect of defined benefit pension plans is the present value of the defined

benefit obligation less the fair value of planned assets, together with adjustments for unrecognised actuarial gains or losses and past

service costs.

The defined benefits obligation is calculated annually by independent actuaries.

For the year ended 31 December, 2013

A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. The Company has

no legal or constructive obligations to pay further contributions if the funds does not hold sufficient assets to pay all employees the

benefits relating to employee service in the current and prior periods.

The Company pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary

basis. The Company has no further payment obligations once the contributions have been paid. The contributions are recognised as

employee benefit expense when they are due.

IPWA Plc

2 0 1 3 2 0 1 2

16 PROFIT BEFORE TAXATION ₦'000 ₦'000

The following items have been charged/(credited) in arriving

at profit before tax:

Depreciation 50,822 51,732

Impairment loss 4,800 4,800

Auditors' remuneration 2,000 2,000

Directors' emoluments:

Fees 652 652

Others 402 1,380

Loss on disposal of fixed assets 682 -

Finance cost 10,275 2,832

And crediting

Finance income - 1,137

======== ========

2 0 1 3 2 0 1 2

17 TAXATION ₦'000 ₦'000

.1 Income Statement

Current company income tax 6,136 6,807

Education tax - -

_________ _________

6,136 6,807

Deferred tax provision on origination of 4,105 14,804

temporary differences

_________ _________

Tax charge to income statement 10,241 21,611

========= =========

2 0 1 3 2 0 1 2

₦'000 ₦'000

.2 Current tax liabilities

The movement in current tax balance is as follows:

At 1 January 21,388 27,527

Charge for the year 6,136 6,807

_________ _________

27,524 34,334

Payment during the year ( 1,249 ) ( 12,946 )

_________ _________

At 31 December 26,275 21,388

======== ========

32


The provision for income tax is based on the provision of the Companies Income Tax Act (LFN CAP 60) as amended to date while

education tax is based on Education Tax Act No. 7 CAP E4 LFN, 2004.

IPWA Plc

2 0 1 3 2 0 1 2

₦'000 ₦'000

26,275 21,388 _________ _________

26,275 21,388

======== ========

2 0 1 3 2 0 1 2

.3 Deferred tax ₦'000 ₦'000

Per income statement

Charge to income statement for the year 4,105 14,804 ======== ======

Per statement of financial position

The movement in deferred tax is as follows:

Deferred tax liability:

At 1 January 29,781 14,977

Charge for the year 4,105 14,804 _________ _________

At 31 December 33,886 29,781

======== ========

18 STATEMENT OF CASH FLOWS

2 0 1 3 2 0 1 2

.1 Cash flows from operating activities ₦'000 ₦'000

Reconciliation of net profit to operating profit

before working capital changes

Loss after tax ( 92,053 ) (112,329)

Adjustments for non cash items:

Depreciation of property, plant and equipment 50,822 51,732

(Profit) or Loss on disposal of property, plant and equipment 682 -

Amortisation of intangible assets 90 90

Interest income - (1,318)

Interest expense 10,275 2,832

Taxation 10,241 21,611

Adjustments 4,081

Provision no longer required -

Net charge in retirement benefit obligations 2,475 -728

Operating profit before working capital changes -17,468 -34,029

.2 Working capital changes

Decrease/(Increase) in inventories 33,228 ( 35,891 )

Decrease in trade and other receivables 1,075 81,848

increase) in trade and other payables 4,042 7,323

38,346 53,280

20,878 19,251

Cash generated from operations 20,878 19,251

33

Other tax liabilities


Taxation

The Statement of Cash Flows has been drawn up using the indirect method. Working capital comprises inventories, receivables and

current liabilities (excluding bank overdrafts).The cash flow from investing activities relates to the net amount of investments and


IPWA Plc

2 0 1 3 2 0 1 2

₦'000 ₦'000

19 Revenue by geographical location of customers:

Domestic (within Nigeria) 517,346 466,282

======== ========

All sales were within Nigeria

2 0 1 3 2 0 1 2

₦'000 ₦'000

20 OTHER INCOME

Sale of scraps 1,412 1,137 ======== ========

2 0 1 3 2 0 1 2

₦'000 ₦'000

21 SHARE CAPITAL

Authorised

520,000,000 ordinary shares of 50k each 260,000 260,000

======== ========

Issued and fully paid

514,140,713 ordinary shares of 50k each 257,070 257,070

======== ========

2 0 1 3 2 0 1 2

22 SHARE PREMIUM ₦'000 ₦'000

At 31 December 217,610 217,610

======== ========

2 0 1 3 2 0 1 2

23 REVALUATION RESERVE ₦'000 ₦'000

At 1 January - -

Surplus on revaluation - -

Transfer to retained earnings - -

_________ _________

At 31 December - -

======== ========

34


IPWA Plc

2 0 1 3 2 0 1 2

24 RETAINED PROFIT ₦'000 ₦'000

Revenue reserve as per NGAAP at 31 December 748,580 876,931

Add back

- Transfer from Revaluation Reserves -

- Loss for the year -92,053 (112,329) Other movements (16,022) _________ _________

656,527 748,580

_________ _________

Balance at 31 December as per IFRS 656,527 748,580

======== ========

25 CHAIRMAN'S AND DIRECTORS' EMOLUMENTS,

PENSIONS AND COMPENSATION FOR

LOSS OF OFFICE

The remuneration paid to Directors was 2 0 1 3 2 0 1 2

.1 Fees: ₦'000 ₦'000

Director's Fees 652 652

Director's Expenses 402 1,380 _________ _________

1,054 2,032

======== ========

.2 Fees and other emoluments disclosed above

include amount paid as:

Fees 1,054 2,032

Other emoluments - - _________ _________

1,054 2,032

======== ========

.3 Number of directors (excluding the chairman) whose

emoluments were within certain ranges were: Number Number

N100,000 and above

======== ========

.4 Waived emoluments

Number of directors who have waived their rights

to receive emoluments 1 1

======== ========

Aggregate of those emoluments - -

======== ========

.5 Pensions of directors and past directors

Aggregate amount of directors' or past directors

or past directors' pensions 1 1

Other pensions - -

======== ========

35


IPWA Plc

2 0 1 3 2 0 1 2

.6 Compensation to directors for loss of office

As directors - -

As executives - -

======== ========

26 EMPLOYEES AND RELATED REMUNERATION

Number of employees in receipt of emoluments

excluding allowances were within the following

ranges: 2 0 1 3 2 0 1 2

Number Number

N120,001 - N220,000 47 47

N220,001 - N320,000 46 48

N320,001 - N420,000 6 6

N420,001 - N520,000 1 1

N520,001 - N620,000 4 4

N620,001 - N720,000 2 2

Above N720,000 4 4 _________ _________

110 112

'======== '========

36

Key management comprises the directors (executive and non-executive) and

the Chairman that form part of the leadership team (Chief operating officers).


IPWA Plc

27 CONTINGENT LIABILITIES, GUARANTEES AND OTHER FINANCIAL COMMITMENTS

i Charges

The company did not charge any of its assets to secure liabilities of third parties.

ii Financial commitments

iii Legal charges

iv Capital commitments

There was no capital expenditure contracted but not provided for in the financial statements.

28 LOANS AND OTHER TRANSACTIONS FAVOURING

DIRECTORS AND OFFICERS

29 EARNINGS PER SHARE

30 APPROVAL OF FINANCIAL STATEMENTS

These financial statements were approved by the Board of Directors of the company on…………………...,2014

37


The Directors are of the opinion that all known liabilities and commitments have been taken into account in the preparation of the financial

statements under review. These liabilities are relevant in assessing the company's state of affairs as at 31 December, 2012.

There is a contingent liabillity in respect of six cases (2010 - two cases) pending at the law court against the company.

No provision has been made on four of the cases (2010 - two cases), as directors are of the opinion that the actions are


not likely to succeed.

a) During the year, the company guaranteed no loan in favour of its directors and officers.

b) No loans were given to the directors to purchase the company's shares during the year.

The Earnings Per Share (EPS) is calculated by dividing the profit attributable to ordinary shareholders by the number of ordinary shares

issued as at 31 December, 2012.

IPWA PLC

N'000 % N'000 %

Revenue 517,346 466,282

Other revenue 1,412 1,137 __________ __________

518,758 467,419

Bought in goods

and services (472,074) (435,929) __________ __________

VALUE ADDED 46,684 100 31,490 100

========= === ========= ===

APPLIED AS FOLLOWS:

1 To pay employees

Salaries and wages, pension

and social benefits 67,399 145 67,643 215

2 To pay providers

of funds

Finance expenses 10,275 22 2,832 9

3 To pay government

Income and education taxes 6,136 13 6,807 22

4 To provide for maintenance

and expansion of assets

Depreciation 50,822 109 51,732 164

Deferred tax 4,105 9 14,804 47

Retained profit (92,053) -197 (112,329) -357

_________ ___ _________ ___

VALUE ADDED 46,684 100 31,490 100

======== === ======== ===

38

Value added is the wealth created by the efforts of the company and its employees and its

allocation between employees, shareholders, government and re-investment for the future

creation of further wealth.

Value Added Statement for the year ended 31 December, 2013

2 0 1 3 2 0 1 2

IPWA Plc

2 0 1 3 2 0 1 2 2 0 1 1 2 0 1 0 2 0 0 9

STATEMENT OF FINANCIAL POSITION N'000 N'000 N'000 N'000 N'000

Property, plant and equipment 1,169,147 1,220,657 1,268,763 178,699 244,635

Intangible assets:Software 86 176 265 - -

Financial Assets 411 411 411 338 -

Inventory 102,096 135,323 99,432 105,012 105,012

Trade and other receivables 186,379 187,455 269,303 278,561 278,561

Cash and bank balances 16,611 14,601 33,539 19,811 19,811 __________ ___________ ___________ ___________ __________

Total assets 1,474,729 1,558,623 1,671,713 582,421 648,019

Current liabilities (257,325) (255,744) (254,560) (231,485) (247,189)

Non-current liabilities (86,198) (79,619) (65,543) (18,473) - ___________ ___________ ___________ ___________ __________

Total net assets 1,131,206 1,223,260 1,351,610 332,463 400,830 ========= ========= ========= ========= =========

Share capital 257,070 257,070 257,070 257,070 257,070

Share premium 217,610 217,610 217,610 217,610 217,610

Retained earnings 656,527 748,580 876,930 (142,217) (73,850) ___________ ___________ ___________ __________ __________

Capital employed 1,131,207 1,223,260 1,351,610 332,463 400,830 ========= ========= ========= ========= ========

STATEMENT OF COMPREHENSIVE

INCOME

Revenue 517,346 466,282 382,582 411,993 399,877 ========= ========= ========= ========= =========

(Loss)/profit before tax (81,812) (90,718) (156,408) (77,752) 10,867

Taxation (10,241) (21,611) (22,318) 18,077 (15,305) __________ __________ __________ __________ _________

Loss after tax (92,053) (112,329) (178,726) (59,675) (4,438) __________ __________ __________ __________ _________

Transfer to revenue reserve (92,053) (112,329) (178,726) (59,675) (4,438) ======== ======== ========= ======== ========

Profit attributable to:

Equity shareholders (92,053) (112,329) (178,726) (59,675) -4,438======== ======== ======== ======== ========

Loss per 50k share [k] (18) (22) (35) (12) (1)

Net assets per 50k share [k] 220 238 263 65 78

39

The balances for 2013,2012 and 2011 have been stated in accordance with International Financial Reporting Standards (IFRS) as issued

by the International Accounting Standards Board (IASB). For all periods up to and including the year ended 31 December, 2010 the

balances have been stated in accordance with Nigerian Generally Accepted Accounting Principles [N-GAAP].

Financial Summary for five-year ended 31 March

IFRS NGAAP

NOTE: Earnings and net assets per share are based on 514,140,713 ordinary shares of 50k each and profit after tax as at the date of

these financial statements.

IPWA PLC

SCHEDULES TO THE FINANCIAL STATEMENTS

COST OF SALES

2 0 1 3 2 0 1 2

N'000 N'000

Raw materials consumed 266,639 235,430

Factory salaries and wages 16,696 14,716

Technical & Development 12 -

Cleaning/Sanitation expenses - 129

Computer Services/ Maintainance Expenses 118 231

Deferred Expenses 15 -


Donation/Gift 100 14

Other Employee's allowance 5,445 4,673

Entertainment 46 203

Freight charges 40 6

Goods Issued/FOC - 35

Industrial training fund 167 147

Laboratory expenses - 45

Legal & Professional 10 -

Light, Water & Power 5,987 9,095

Manpower, Training & Developments 10 135

Motor running 316 761

NSITF 1,071 811

Overseas Duty Tour 272 -

Postages and telephones 642 626

Printing and stationery 79 33

Production/Office Consumeables 270 173

Public Relations 84 320

Rent and rates 308 800

Repairs and maintenance 1,709 3,327

Security Expenses 4 -

Staff Pension (Junior & Senior) 2,492 1,110

Staff Welfare Expenses 972 1,171

Subscription 20 20

Transport, travelling and accomodation 2,096 2,556 __________ __________

331,189 303,915

========== ==========

Percentage of Turnover 64 65

40

Schedule 1

IPWA PLC

SCHEDULES TO THE FINANCIAL STATEMENTS [cont'd)

ADMINISTRATION EXPENSES2 0 1 3 2 0 1 2

N'000 N'000

Directors' emoluments:

Fees 652 652

Expenses 406 1,380

Salaries and wages 24,260 23,231

Other Executives Allowances 100 -

Advertising 412 1,794

Amortisation of software 90 90

Audit committee expenses 100 251

Audit expenses 378 -

Audit fee 2,000 2,000

Bank charges - 5,159

Canteen expenses 4,048 3,703

Cleaning/Sanitation expenses 1,074 1,238

Computer Services/ Maintainance Expenses 1,311 1,688

Deffered Expensed released - 200

Demolition expenses - 693


Directors sitting allowance 200 233

Donations and gifts 3,449 3,589



Freight charges/container clearing expenses 177 13

General expenses 93 -


Insurance - 2,405

Laboratory Expenses 31 -

Legal and professional charges 12,434 5,247

Light, water and power 2,598 4,133

Loss on disposal of fixed assets 682 -

Medical expenses 2,621 4,286

Motor running 3,250 5,020

Newspapers and periodicals 620 587

NSITF 1,607 1,465

Postages and telephones 2,929 3,450

Printing and stationery 1,182 1,349

Production/Office consumables 306 357

Public relations 19,286 7,661

Rent and rates 799 349

Repairs and maintenance 1,990 2,660

Sales/ Conferences /promotion 240 -

Secretarial/ AGM expense 1,782 4,623

Security expenses 1,969 1,999

Staff Pension 2,146 1,059

Staff training & Developments 290 430

Staff Uniforms & clothings 315 215

Staff Welfare Expenses 4,483 8,479

Subscription 683 661

Transport, travelling and accomodation 3,430 7,208 _________ _________124,340 135,766

========= =========

41

Schedule 2

IPWA PLC

SCHEDULES TO THE FINANCIAL STATEMENTS [cont'd]

SELLING AND DISTRIBUTION EXPENSES

2 0 1 3 2 0 1 2

N'000 N'000

Salaries and wages 26,444 23,109

NSITF 1,753 1,542

Advertising and sales promotion 34 420

Applicator's fees 1,159 480

Bad Debts written 12,691 -

Bank charges 1,059 -

Cleaning/Sanitation expenses 157 151

Commissions 25,399 26,406

Computerservice/maintainance expenses 249 488

Delivery expenses 14,143 11,394


Discounts 90 233

Donation and gift 761 960

Doubtful debts 4,800 4,800



Freight charges/container clearing expenses 12 -

General expenses 24 29


Insurance expenses 2 100

Light, water and power 1,174 2,318

Manpower, Training & Development 60 148

Medical expenses 70 -

Motor running 2,148 4,118

Newspapers and periodicals 152 178

Oversea Duty tour expenses 38 -

Postages and telephones 2,678 2,572

Printing and stationery 244 223

Production/Office consumables 3 2

Public Relations 8,957 10,206

Relocation expenses 34 -

Rent and rates 2,462 3,211

Repairs and maintenance 191 1,156

Sales/ Conferences /promotion 250 -

Security expenses 654 696

Share issue expenses - 25

Staff Pension 2,491 1,447

Staff welfare 704 1,195

Subscription 87 92

Transport , travelling and accommodation 5,837 6,359_________ _________

134,767 116,941

========= =========

42

Schedule 3

IPWA PLC

SCHEDULES TO THE FINANCIAL STATEMENTS [cont'd]

EXPENSES 2 0 1 3 2 0 1 2

N'000 N'000

Raw material consumed 266,639 235,430 Director's emolument 652 652 Director's expenses 406 1,380 Salaries and wages 67,399 61,056Advertising and sales promotion 446 2,214Amortisation of software 90 90 Applicator's fees 1,159 480 Audit fees 2,000 2,000 Bad Debts written 12,691 - Bank charges 1,059 5,159

Canteen expenses 4,048 3,703 Cleaning/Sanitation expenses 1,231 1,518Commissions 25,399 26,406

Computerservice/maintainance expenses 1,678 2,407Deffered Expenses 15 200 Delivery expenses 14,143 11,394

Demolition expenses - 693 Depreciation 50,822 51,732Discounts 90 233Donation and gift 4,310 4,563 Doubtful debts 4,800 4,800Employee compensation expenses 16,405 17,815Entertainment 736 1,306Freight charges/container clearing expenses 229 19 General expenses 117 29Industrial training fund 943 610Insurance expenses 2 2,505Laboratory Expenses 31 45

Legal and Professional 12,444 5,247Loss on disposal of fixed assets 682 - Light, water and power 9,759 15,546Manpower, Training & Development 70 283 Medical expenses 2,691 4,286 Motor running 5,713 9,899Newspapers and periodicals 772 765NSITF 4,431 3,838

Oversea Duty tour expenses 310 - Postages and telephones 6,249 6,648Printing and stationery 1,505 1,605Production/Office consumables 575 532Public Relations 28,327 18,187 Relocation expenses 34 -

Rent and rates 3,569 4,360Repairs and maintenance 3,890 7,143Sales/ Conferences /promotion 490 - Security expenses 2,627 2,675Share issue expenses - 25

Staff Pension 7,130 3,616Staff welfare 6,449 11,275Subscription 790 773

Techical and Developments 12 - Transport , travelling and accommodation 11,363 16,123

Goods issues/FOC - 35

Other Executive Allowance 100 - Srcretarial /AGM expenses 1,782 4,623 Staff uniform & clothing 315 215 Audit expenses 378 - Audit committee expenses 100 251

Directors sitting allowance 200 233 _________ _________590,295 556,622

========= =========

43

Schedule 4

IPWA PLC [RC:2432] ANNUAL REPORT AND FINANCIAL STATEMENTS ... PLC - 2013... · 31 december, 2013...

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Transcript of IPWA PLC [RC:2432] ANNUAL REPORT AND FINANCIAL STATEMENTS ... PLC - 2013... · 31 december, 2013...